Our lawyers are investigating Wedbush Securities Inc. (“Wedbush”) (CRD# 877) broker William “Mark” Heiden (CRD# 2885156) for alleged unsuitable recommendations and overconcentration in various oil and gas investments.
Heiden, based out of Wedbush’s Newport Beach, California office, currently has four disclosures according to his FINRA BrokerCheck report. According to the report, Heiden’s most recent disclosures are two FINRA arbitration filings, one filed in March 2016 and the other filed in October 2015. Both are currently pending.
The 2015 FINRA arbitration alleges wrongful, intentional, fraudulent and deceptive activities, including unsuitable and unauthorized trading, falsifying documents, misrepresentation, and omission of material facts. The FINRA arbitration alleges $1.5 million in damages. In addition to those allegations, the 2016 FINRA arbitration alleges improper and unauthorized use of margin. The 2016 FINRA arbitration alleges $200,000 in damages.
Upon information and belief, Heiden unsuitably recommended and overconcentrated his clients in oil and gas investments. Allegedly, he overconcentrated his clients’ accounts in various energy-related investments, including Energy XXI Bermuda Ltd., Clearbridge American Energy MLP, Goldman Sachs MLP Energy, Arch Coal, and Seadrill.
Heiden has been employed by Wedbush since August 2013. Prior to his time with Wedbush, he was employed by Morgan Stanley (CRD# 149777) from June 2009 to August 2013.
Energy investments, reliant on the prices of oil, are very volatile and risky. Unfortunately, many brokers and brokerage firms recommended these investments to conservative investors without disclosing this risk.
Among the riskier oil investment instrument is the master limited partnership (“MLP”). An MLP is essentially a partnership that has tax benefits because all the income goes directly to the investors, known as limited partners. This would result in dividends, which were quite high when the price of oil was higher. Many brokers and brokerage firms focused on this frequent dividend payment to tout MLPs as safe, riskless, and great income-producing investments.
Though the brokers and brokerage firms who touted these investments as riskless and conservative should have known then, everyone absolutely knows now that they were wrong. Allow our lawyers to attempt to get your lost investment back due to this broker and brokerage firm misconduct.
If your broker or investment advisor advised you to invest in Sandridge and Arch, or any other similarly situated company linked to the oil or gas or the energy sector, and you have incurred substantial losses, please contact us at www.oilgasfinraarbitration.com for a no-cost case evaluation. Cases are taken on a contingency fee basis, meaning no attorney’s fee is owed if there is no recovery. Our lawyers have collectively represented hundreds of investors in FINRA or securities arbitration claims and recovered millions of dollars from large and regional brokerage firms.
For more information about the law firms, the lawyers, and the oil and gas investment practice area, please visit the oil and gas investment website at: www.oilgasfinraarbitration.com. You can also contact toll-free Mr. Silver at: (800) 975-4345 for a confidential, no-cost consultation on the potential for recovery of your investment losses. Our attorneys represent clients nationwide in securities cases to recover investment losses. No fee unless we obtain a recovery for you.